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Role of advertising in marketing program
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Role of advertising in marketing program

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  • 1. Functions of Objectives  Operate as communication and coordination device where they provide a vehicle by which the client, the agency account executive, and the creative team communicate.  Provides criterion for decision making if two or more alternative campaigns are generated.  They also evaluate result (It implies that there need to be a measure such as market share or brand awareness associated with objective)
  • 2. Objectives of Advertisements Sales as an Objective  Immediate sales or market share.  The measure is available to evaluate the campaign.  Contributory role of advertising often occurs over long run.  Advertising is only one of the many forces that influence sales.  Ads can draw potential buyers the dealer/ retailer.
  • 3. Cont… Get new customers from other Brands Get new customers from other categories (coffee drinkers to cold drinks, sweets to chocolates) Increasing share of requirements (for those using more than one brands) Increasing brand loyalty, reducing attrition (low repurchase rate) and price elasticity (by increasing loyalty)
  • 4. Cont… Increasing Usage: Increase usage in existing product class. (eg tooth paste, Cadbury) The effect is reduction in time between purchases. Behavioral or Action Objectives: If the ad target is new customers, the goal may be to try a brand for the first time. The result would be measured by the number of new customers attracted.
  • 5. Cont… Brand Awareness: Needed when the goal is to stimulate trial purchase Brand Comprehension: Communication about brand attributes. Brand Image and Personality: Brand attitude: Like, dislike feeling towards a brand. Association feelings with Brands or Use Experience:
  • 6. Role of Advertising In Marketing Program  Most appropriate way to improve sales may not involve promotion or ads at all but extensive distribution, better relationship with trade, lower price or better quality.  Brand manger should find out exact source of poor sales. (Eg product purchased once means ad is successful but no repeat purchase is problem with quality)  Marketing plan thus based on specific problems or opportunities through situation analysis.
  • 7. Cont…  Reinforce idea of high quality and prestige (through people, event or situation).  Stress price differentiation for low priced product.  Role of ad also depend on distribution channel selected. Door to Door sales- Introduce sales person  Ads can be targeted for either consumer or trade. (Trade- push, Consumer- pull)  Advertising can be targeted on distribution strategy {Intensive (customers), Selective, Exclusive (dealers)}
  • 8. Communication Mix  Direct Selling  Sales promotion  Public Relation  Publicity  Advertising
  • 9. Direct or Database Marketing  Includes direct mailing, Telemarketing, Direct response ad on TV & Radio (toll free number)  It has ability to target specific individual customers with an offer that is tailor-made  It directly measures response (responses during telemarketing can be entered into computerized database and further communication is customized )  The aim is not only to build awareness or change preference but to generate an action
  • 10. Sales Promotions  Coupons, Sampling, premiums, low cost finance, rebates (discounts), trade promotions, bonus, displays and merchandising allowance.  It is used to ensure that consumer buy the products, influence repurchase, influence time and place of purchase, push the brand (retail trade).  It helps in discriminating different customers. (eg time spent by customers to use coupon)
  • 11. Cont…    1. 2. Retailers use promotion to push perishable or non moving goods. Sales promotion offered for limited period Trade Promotion: Off invoice or buying allowance: Price cut on large volume purchase Count Recount allowance: Discount applied only on qty transferred from retailers warehouse to stores during promotion
  • 12. Cont… 3. Bill back allowance: Discount on per case basis only if performance criteria are met 4. Display allowance 5. Slotting or facing allowance: One time fee for buying new product. 6. Trade Inventory finances or delayed billings: Generally seen in durable goods markets for stocking adequate inventory
  • 13. Other Action Oriented Communication  Retail Advertising: Provide consumer with lot of specific information such as size, color, prize of shirt  Co operative Advertising: Manufacturer offer retailer an advertising program for later to run. Program may include suggested ad format, material to be used to create actual ad and part of money to pay the cost. There are three type of co operative ads vertical, horizontal (many dealers coming together) and ingrient producer (Eg NutraSweet pays part of ad run by user product diet Coke)
  • 14. Cont…  Reminder, Point of purchase and Specialty advertising: Already brand is established and ads stimulate immediate purchase. POP (package, price, and key selling idea at place where product is sold), Specialty (useful products given free to consumers like pens, calendars to promote other products)
  • 15. Cont…  In store advertising and Merchandising: Most customers make decision to purchase after entering the stores by screening the brands (electronically scrolling ads, placards, TV near checkout lanes, radio ads in stores, ads on shopping carts etc.) Merchandising is displays, signs, and positioning of brand in stores.  Industrial Marketing: Sales leads (telemarketing, call back, internet)
  • 16. Public Relations  Used to reach hard to reach consumers and to get more credibility (editorial in news papers & magazines or by associating with sports, cultural event or charitable organizations)  It helps in building corporate public image
  • 17. Role of Advertising In Communication Mix  Utilized when problem is communication with consumers.  Immediately more money should not be spent on advertising  Advtg is only one part of communication  Within this mix ads has various strengths and weaknesses.  Ad unlike sales, is much cheaper way to reach target consumers due to mass med.
  • 18. Cont…  Unlike sales calls ads can be complex, can use visual devices to increase persuasion of message.  Ads help in increasing brand awareness developing favorable attitudes.  Repeated reminders possible with ads.  Sales are nor guaranteed easily  Sales person can often communicate more complex information( B To B )
  • 19. Cont…  Ads are tailor-made, sales person can make adjustment as per needs.  With sales person needs can be identifies and feedback is possible and product display is possible.  Sales person can close communication by getting order  Direct marketing need to target certain prospects with more customized message, provide more information and induce customer to act
  • 20. Cont…  Ads help in success of sales promotion  Ads are perceived as bias  People do not trust ads & skeptical about claims  In such cases advertiser may use more credible communication such as publicity or public relation.  Company must work out combination of communication mix which compliment each other.